Bourses turn negative

Indian equity bourses fell sharply in late afternoon session, tracking weak European markets. Sentiments were subdued, as India's manufacturing activity remained unchanged in the month of September 2019, hit by subdued demand conditions domestically and externally. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - was at 51.4 in September, unchanged from August. Separately, a survey of World Economic Forum business leaders showed that the possibility of a fiscal crisis is the biggest risk to doing business globally.

On the global front, European markets were trading in red, as euro area manufacturing sector contracted at the fastest pace in nearly seven years as output, new orders and purchasing fell sharply in September. The final data from IHS Markit showed that the final manufacturing Purchasing Managers' Index dropped to 45.7 in September from 47.0 in August. However, Asian markets were trading in mostly green.

Back home, sugar industry stocks were in focus, after the government fixed higher sugar sale quota at 21 lakh tonne for October. The food ministry has increased the allocation for October from 19.5 lakh tonne in September keeping in view festivals of Dussehra and Diwali.

The BSE Sensex is currently trading at 38107.13, down by 560.20 points or 1.45% after trading in a range of 37929.89 and 38923.78. There were 6 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.75%, while Small cap index was down by 1.90%.

The top losing sectoral indices on the BSE were Telecom down by 5.43%, Realty down by 4.56%, TECK down by 2.63%, Bankex down by 2.39% and Basic Materials down by 2.06%., while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.30%, Hindustan Unilever up by 0.48%, HDFC up by 0.40%, Maruti Suzuki up by 0.35% and HDFC Bank up by 0.32%. On the flip side, Yes Bank down by 23.88%, Indusind Bank down by 5.79%, SBI down by 5.48%, Bharti Airtel down by 5.12% and ONGC down by 3.22% were the top losers.

Meanwhile, hit by subdued demand conditions domestically and externally, India's manufacturing activity remained unchanged in the month of September 2019. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - was at 51.4 in September, unchanged from August.

The report found that aggregate manufacturing production rose in the reported month, but the pace of expansion was the joint-slowest since March 2018. Further, improved technology and new business gains at some firms boosted output, while other companies lowered production due to muted demand. The report also noted that total sales rose further, but the pace of increase was among the weakest seen in the current 23-month sequence of uninterrupted expansion.

On the price front, a lack of demand for raw materials and semi-finished items acted to curb inflation in September. The rate of increase in overall cost burdens was among the weakest seen in a decade. Similarly, a marginal rise in selling prices was recorded.

Besides, the report highlighted a dip in business sentiment among Indian goods producers. The degree of optimism was the second-lowest registered in over two-and-a-half years. Some firms expect a pick-up in demand and investment in marketing to lift output in the year ahead, while others were concerned about competitive pressures and tough market conditions.

The CNX Nifty is currently trading at 11305.50, down by 168.95 points or 1.47% after trading in a range of 11247.90 and 11554.20. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were BPCL up by 5.08%, Mahindra & Mahindra up by 1.02%, Hindustan Unilever up by 0.66%, HDFC Bank up by 0.53% and Indian Oil Corporation up by 0.41%. On the flip side, Yes Bank down by 24.40%, Zee Entertainment down by 12.28%, Indusind Bank down by 5.98%, SBI down by 5.52% and Bharti Airtel down by 5.08% were the top losers.

Asian markets were trading mostly higher; Taiwan Weighted strengthened 137.97 points or 1.27% to 10,967.65, Nikkei 225 surged 129.40 points or 0.59% to 21,885.24, Straits Times advanced 28.88 points or 0.93% to 3,148.87 and KOSPI was up by 9.37 points or 0.45% to 2,072.42. On the flip side, Jakarta Composite was down by 6.87 points or 0.11% to 6,162.23.

All European markets were trading in red; FTSE lost 1.19 points or 0.02% to 7,407.02, CAC fell 6.15 points or 0.11% to 5,671.64 and DAX was down by 0.43 points or 0.01% to 12,427.65.